Reliance set to raise Rs 10000cr in debt

New Delhi, May 22 (PTI): Reliance Industries Ltd plans to raise up to Rs 10,000 crore in debt this fiscal to partially fund its $26-billion investment plan.

RIL has sought shareholders’ approval to raise funds through non-convertible debenture in one or more tranches. The company has scheduled an annual general meeting to vote on the issue on June 18.

“In order to augment long-term resources for financing, inter alia, the ongoing capital expenditure and for general corporate purposes, the company may offer or invite subscription for secured/unsecured redeemable non-convertible debentures, in one or more series/tranches on private placement, issuable/redeemable at par,” the company said in its annual report for 2013-14.

India’s biggest company is expanding its petrochemical plants and will build new ones to improve margins from its refining business even as it drills more wells to boost slowing oil and gas production.

Besides, RIL is setting up a plant that will turn petroleum coke into synthetic gas, which will be used at the oil refineries to a lower cost. It also plans to open more retail stores and start a high-speed broadband service.

“We are implementing several projects both in the manufacturing domain and service sector to continue the tradition of creating significant shareholder value,” RIL chairman and managing director Mukesh Ambani said in the annual report.

The resolution for fund-raising did not elaborate on the projects the money would be used for. “We have a strong balance sheet to support our ambitious growth plans,” Ambani said.

RIL has commenced work on all the major value enhancing projects such as petcoke gasification and the refinery off-gas cracker project.

After two years of being a debt-free company on a net level, the oil-to-yarn and retail conglomerate once again has net debt on its balance sheet.

Retail plans

Reliance Retail, the retail arm RIL, plans to foray into unexplored markets and tap the potential of e-commerce channel this year.

“Continued expansion is the way ahead. The road map is clear — it will be achieved by growing in existing markets and foraying into unexplored markets,” RIL said.

On the company’s plans for the vertical, it said, “The business is poised to launch multi-channel shopping in the coming year.”